With the passage of the Tax Cuts and Jobs Act of 2017, many new changes were made to the nation’s tax laws that affect all taxpayers. One such change was the near doubling of the Standard Deduction. Single and Married Filing Separate tax filers will see the Standard Deduction go from $6,350 to $12,000, Head-of-Household filers from $9,350 to $18,000, and Married Filing Joint from $12,700 to $24,000.
This significant increase in the Standard Deduction will mean far fewer taxpayers will itemize deductions, such as state and local taxes, mortgage interest, and charitable contributions, on their returns for 2018. Here at Young Tax Service, just over one out of every five of our clients itemized deductions on their 2017 tax return. This year we expect that ratio to drop to one out of every fifteen. So what does that mean for you? It means that many of our clients may see a greater tax advantage with the higher Standard Deduction than with itemizing their deductions. If you would like to know where you stand with this new change in the tax law, please give us a call at (716) 664-1550.Thanks for doing business with us.
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